SanDisk 2010 Annual Report Download - page 231

This is a TAB type table. Insert
conts here. Annual Report
Notes To Consolidated Financial Statements
Flash Ventures for all periods presented and determined that it is not the primary beneficiary of any of the
entities within Flash Ventures because it does not have a controlling financial interest in any of those entities.
The Company purchased NAND flash memory wafers from Flash Ventures, made loans to Flash Ventures
and made reimbursements to Flash Ventures totaling approximately $1.94 billion, $1.98 billion and $2.01 billion
in the years ended January 2, 2011, January 3, 2010 and December 28, 2008, respectively. The Company
received loan repayments from Flash Ventures of $59.7 million in the year ended January 2, 2011 and
$387.3 million in the year ended January 3, 2010. At January 2, 2011 and January 3, 2010, the Company had
accounts payable balances due to Flash Ventures of $240.5 million and $182.1 million, respectively.
The Company’s maximum reasonably estimable loss exposure (excluding lost profits), based upon the
exchange rate at each respective balance sheet date, as a result of its involvement with Flash Ventures is
presented below (in millions).
January 2,
2011
January 3,
2010
Notes receivable ...................................................... $ 1,232 $ 1,083
Equity investments .................................................... 501 424
Operating lease guarantees .............................................. 879 1,070
Maximum loss exposure ............................................ $ 2,612 $ 2,577
At January 2, 2011 and January 3, 2010, the Company’s retained earnings (accumulated deficit) included
approximately $2.5 million and $2.8 million, respectively, of undistributed earnings of the Flash Ventures.
The following summarizes the aggregated financial information for Flash Ventures as of January 2, 2011
and January 3, 2010 (in millions).
January 2,
2011
January 3,
2010
(Unaudited)
Current assets ............................................................ $ 1,028 $ 794
Property, plant and equipment and other assets .................................. 4,187 3,017
Total assets .......................................................... $ 5,215 $ 3,811
Current liabilities .......................................................... $ 1,632 $ 661
Long-term liabilities ....................................................... 2,465 2,166
The following summarizes the aggregated financial information for Flash Ventures for the fiscal years
ended January 2, 2011, January 3, 2010 and December 28, 2008, respectively (in millions). Flash Ventures’ year-
ends are March 31, with quarters ending on March 31, June 30, September 30 and December 31.
Twelve Months Ended
January 2,
2011
January 3,
2010
December 28,
2008
(Unaudited)
Net sales(1) ..................................................... $ 3,467 $ 3,296 $ 3,945
Gross profit ..................................................... 15 14 21
Net income ..................................................... (1) 68 7
(1) Net sales represent sales to both the Company and Toshiba.
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